INFY Stock Climbs As Truist AI Deal And ADR Strength Offset U.S. Visa Risk

Infosys shares briefly dropped 10% to ₹1,038.05 on 23 October 2026 before recovering within minutes. The stock opened at ₹1,187 and reached a high of ₹1,197.80 before the sudden decline. By 10:50 AM, it was trading at ₹1,156.90, up 0.31%. The cause of the flash crash is unknown. Infosys is set to announce Q2 results later today, with revenue growth guidance expected to be cut.

The US Department of Labor suspended eight IT firms, including Infosys, TCS, Wipro, HCL, Cognizant, Capgemini, Microsoft, and Adobe, from applying for permanent residency for foreign workers. This move, ahead of US mid-term elections, aims to address domestic political concerns. Existing applications are on hold, and new ones will not be accepted, impacting H1B visa holders' prospects for permanent residency.

In 2026, IT outsourcing contracts are shifting among major providers. HCLTech won a $1.14B Mercedes-Benz contract from Infosys, Cognizant secured a $300M Daimler Truck deal from Infosys, and Accenture gained RBC's tech mandate from TCS. TCS won a Best Buy India GCC transition worth ~₹2,000 crore. Meta and Google reduced outsourcing work with Wipro, Accenture, and HCLTech, while Vanguard insourced some Infosys work. AI and cost optimization are key factors in these changes.

The Trump administration has suspended Microsoft, Adobe, and other tech firms from the PERM program, which aids foreign workers in obtaining green cards, citing alleged visa fraud. The suspensions, lasting up to 180 days, prevent these companies from processing new or pending labor certification applications. The move is seen as unprecedented and signals heightened immigration compliance risks for employers.

Indian IT stocks rose sharply on October 21, led by L&T Technology Services (LTTS) after strong Q2 results. The Nifty IT index gained 2.6%, with LTTS up 15% and other major IT firms also rising. Jefferies raised price targets for Infosys and TCS, citing earnings resilience and potential re-rating.

Indian IT stocks rose on October 21, driven by strong earnings and a positive outlook from Jefferies. LTTS led gains with a 15% surge after reporting Q2 revenue of Rs 3,040.4 crore and net income of Rs 548.2 crore. Infosys, TCS, and others also advanced. Jefferies raised target prices for Infosys (to Rs 1,160) and TCS (to Rs 2,125) but maintained ratings.